Truck Insurance in India - Types, Cost, Benefits and More

Truck Insurance in India is mandatory by law. There are many banks and financial agencies available in India that provide commercial truck insurance. The truck insurance types, costs and coverage areas are discussed below. Also, important things to keep in mind before buying insurance with the best truck insurance providers in India are discussed in detail.

What is Covered and Not Covered in Truck Insurance

An insurance plan for trucks provides many benefits such as No Claim Bonus, Cashless Garages, Claim Assistance etc. Truck insurance in India covers the following categories

Accidents

Truck insurance covers damage caused to the insured truck in an accident. The damages are fixed by the truck manufacturer and the insurer handles all the costs.

Theft

In case the truck or parts of the truck are stolen, the insurance will cover the costs of replacing those parts.

Fire and Explosion

Damage caused by fire or explosions of any kind will also be covered under insurance.

Natural Disasters

If any kind of damage is inflicted upon the truck by natural disasters such as earthquakes, floods etc, the costs will be handled by the insurer.

Terrorist Activity

Commercial truck insurance also covers any damages caused by any kind of terrorist activity.

Personal Accident

The driver of the truck is also insured under an insurance policy so any injury will also be covered by the insurer including death.

That’s most of what truck or commercial vehicle insurance covers in India. Now let's discuss what truck insurance doesn’t cover.

Drunk Driving

Any damages caused by drunk driving are considered ineligible under insurance for trucks in India.

Driving Without a Licence

To claim insurance a driver must have a valid licence. Any damages caused by a driver without a licence are not covered by commercial truck insurance.

Minor Wear and Tear

Minor damages caused by accidents are not covered by many insurance agencies in India.

Damages Caused by Illegal Activity

Any damages caused to the truck while performing any illegal activity are not covered by the insurance of the truck.

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Truck Insurance Types in India

There are two most common types of insurance provided by banks and finance companies in India.

1. Third Party Liability Insurance

A Third Party Liability Insurance or Liability Only Insurance is the most common and mandatory insurance in India. This type of insurance plan covers any damages or injuries cost by the truck to a third party meaning a person or property of a person. The driver of the truck is also covered under this commercial vehicle insurance.

2. Comprehensive Insurance

Comprehensive insurance covers damages caused to the truck and its driver, moreover, it covers any third-party damages. Comprehensive insurance covers more areas than third party liability insurance.

Commercial truck coverage areas by different types of insurance policies are listed below.

| Coverage | Third Party Liability Insurance | Comprehensive Insurance ||:------------------------:|:-------------------------------:|:-----------------------:|| Personal Accident (PA) | Yes | Yes || Third Party - Person | Yes | Yes || Third Party - Property | Yes | Yes || Accident (Truck Damages) | No | Yes || Theft | No | Yes || Fire and Explosion | No | Yes || Natural Disasters | No | Yes |

Truck Insurance Cost in India

The cost of commercial truck insurance in India varies depending on the type of insurance and the truck. There are several factors of a truck that can change the insurance cost. These factors are discussed in detail below.

1. Type of Insurance

The price of insurance changes depending on the type of insurance. The average truck insurance cost for a Third Party Liability plan is INR 5,000-20,000 per year. The average commercial truck insurance cost in India for Comprehensive Insurance is INR 15,000-50,000 per year.

2. Gross Vehicle Weight (GVW)

The GVW of a truck is one of the factors that decide the yearly cost of truck insurance in India. The chances of accidents increase for a heavy truck therefore the insurance cost is also high. Below is a table of average truck insurance costs for different truck types.

| Type of Truck | Average Insurance Cost (Annual) ||:-------------:|:-------------------------------:|| Mini Truck | INR 10,000-20,000 || Light Truck | INR 20,000-40,000 || Medium Truck | INR 40,000-60,000 || Heavy Truck | INR 60,000-100,000 |

Important Things to Keep in Mind Before Purchasing Truck Insurance

There are many insurance providers available in India. To choose the best insurance provider for a truck you need to keep the following details in mind:

• Keep in mind the GVW and work conditions of the truck
• Read all documents before purchasing an insurance plan
• Insured Declared Value (IDV) - the maximum amount of money an insurance plan will pay
• Compare truck insurance manually or on platforms such as Policybazaar
• Always check the claim settlement ratio of the insurance agency before buying from them

Who has the Best Commercial Truck Insurance

There are many finance agencies and banks that provide commercial truck insurance in India. Some of the best are listed in detail below.

Policybazaar

Policybazaar is one of the best platforms to purchase insurance for commercial trucks. Following are some of the benefits Policybazaar offers to its customers.

• Truck Insurance Calculator
• Paperless procedure
• 24x7 claim assistance
• Policy compare option

IFFCO Tokio

Another good platform to buy commercial vehicle insurance from is IFFCO Tokio. Here are the benefits they provide

24x7 Seamless supportHassle-free claimInsurance plan customization

Digit

Digit is another platform to buy insurance for trucks. It provides the following benefits.

• Customisable IDV
• 27x7 support
• Fast claim process

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How to Buy Truck Insurance Online Step-by-Step

1. Choose an Insurance provider for the insurance
2. Provide truck details such as registration, vehicle weight, truck make and model
3. Select a yearly insurance plan that you want to buy
4. Choose any add-ons if needed
5. Provide supporting documents such as identification, licence etc
6. Pay using your preferred mode and after payment, a soft copy of the insurance will be sent by the insurance agency

Conclusion

In conclusion, truck insurance in India is beneficial for drivers and transport businesses. There are many factors that decide the cost of commercial vehicle insurance and many things need to be kept in mind before purchasing one. Truck insurance online is a simple and hassle-free way to buy commercial truck insurance in India.